Business Management MCQs

✅ The correct answer is option C.
Exchange of ideas, opinions, information etc. between two or more persons is Communication. Communication is simply the act of transferring information from one place, person or group to another. Every communication involves (at least) one sender, a message and a recipient.

✅ The correct answer is option C.
Complete freedom for group or individual decision, with a minimum of leader participation is under free-rein style. Free-rein leadership, also called Laissez-Faire, is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. Mangers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

✅ The correct answer is option A.
In managerial grid, the style which focuses wholly on production is task management. Task management is the process of managing a task through its life cycle. It involves planning, testing, tracking, and reporting. Task management can help either individual achieve goals, or groups of individuals collaborate and share knowledge for the accomplishment of collective goals.

✅ The correct answer is option B.
The integration of objectives and activities of an organization is co-ordination. Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals.

✅ The correct answer is option C.
Passing of authority to make decisions to the lowest possible level in the organizational hierarchy is known as decentralization. Decentralization is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.

✅ The correct answer is option B.
When the supervisor commands subordinates and has close supervision is called autocratic. This an extreme form of dominant leadership. Autocratic leaders make all the decisions and they make it alone. They don’t need to consider anyone’s opinions or ask for advice. They only command. This form of leadership is best in crisis situations, but it can be highly demoralizing for the followers.

✅ The correct answer is option B.
Formal organization gives importance to terms of authority and functions. The formal organization is basically goal-oriented entity that exist to accurate the efforts of individuals and it refers to the structure of jobs and positions with clearly defined functions, responsibilities and authorities.

✅ The correct answer is option D.
Few subordinates report directly to a manger is narrow span of management. The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply, the manager having the group of subordinates who report him directly is called as the span of management.

✅ The correct answer is option D.
Responsibility lies in the hands of people in the upper echelons of the hierarchy is called Exploitative. An exploitative-authoritative management system means that responsibility lies with people in higher positions in the hierarchy.

✅ The correct answer is option D.
Rumours and gossips are informal communication. The Informal Communication is the casual and unofficial form of communication wherein the information is exchanged spontaneously between two or more persons without conforming the prescribed official rules, processes, system, formalities and chain of command.